iQuanti: Cash advances can be excellent ways for people to cover emergency expenses. But borrowers should beware of scammers and fake lenders that can take advantage of them in their time of need.
Luckily, there are a few things borrowers can do when researching lenders to avoid these issues. Here's how cash advances work and how to find safe and legitimate lenders that offer them.
How do cash advances work?
Cash advances, also called paycheck advance loans, are small, short-term loans meant to cover expenses due before the borrower gets their next paycheck. These usually last two to four weeks, depending on when the borrower gets paid.
Cash advances typically come with easy applications and quick approval decisions. Better yet, many lenders consider many factors like borrowers' income and employment history in addition to credit score when deciding whether to approve them. This means borrowers can get approved even if they have poor or fair credit.
If the borrower can't pay back the loan when it's due, they can roll it over for an additional finance charge. However, avoid doing this if possible — these can add up fast if the borrower doesn't have a plan to pay off the loan.
How to find a legitimate payday lender
Here's what borrowers can do to find a safe and legitimate lender:
1. Check the Better Business Bureau
The Better Business Bureau (BBB) is a nonprofit website that helps consumers find trustworthy businesses.
Each business that's registered on the BBB site has its own page. The BBB gives these businesses a grade from A-F based on a variety of factors. Each company's page also has contact information, owner information, and a place for customers to leave reviews.
Naturally, the BBB is a great place to start cash advance shopping. Borrowers can use the site's search bar to look for and sort through lenders. Any lenders with low grades, many complaints, and little to no contact information are worth avoiding.
2. Look at the lender's reviews
In addition to the Better Business Bureau, borrowers should also look at external review sites like Trustpilot. These can help them gather more evidence to determine whether a lender is safe and legitimate. Reviews on Google and social media platforms like Twitter and Facebook are other great sources.
3. Check state laws
Cash advance laws can vary from state to state. Before applying for a loan with any lender, borrowers should check their state's rules and make sure the lender isn't breaking any. For example, if they require a larger finance charge than the state permits, borrowers may not want to move forward with them.
Find a legitimate cash advance
There are plenty of legitimate lenders out there, but it can be hard to tell them apart from scammers. By researching each lender online and checking state laws, borrowers can maximize their chance of finding a safe and legitimate lender.
Notice: Information provided in this article is for information purposes only. Consult your financial advisor about your financial circumstances.
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Original Source: How to Get Cash Advances From a Legitimate Lender
